The Urban Developer
AdvertiseEventsWebinarsUrbanity
Industry Excellence
Urban Leader
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
A one-day deep dive on office, retail, healthcare, childcare and alternative sectors
UPCOMING | COMMERCIAL REAL ESTATE SUMMIT
LEARN MOREDETAILS
TheUrbanDeveloper
Follow
About
About Us
Membership
Awards
Events
Webinars
Listings
Resources
Terms & Conditions
Commenting Policy
Privacy Policy
Republishing Guidelines
Editorial Charter
Complaints Handling Policy
Contact
General Enquiries
Advertise
Contribution Enquiry
Project Submission
Membership Enquiry
Newsletter
Stay up to date and with the latest news, projects, deals and features.
Subscribe
ADVERTISEMENT
SHARE
17
print
Print
ResidentialTed TabetMon 18 Nov 19

Brisbane Apartment Sales Fell 31pc Last Quarter

8939c3ff-7b00-4bf7-ab3e-84976b7cb87e

Brisbane's subdued apartment market, which led the country in and out of the cycle, is showing signs of renewed optimism, with apartment values and rents continuing to stabilise despite low levels of new supply.

While Brisbane suffered the largest decline in new apartments, with its pipeline slumping to nearly 28,000 from about 44,900 a year, many believe the market has reached a turning point.

While the Brisbane's apartment development market hasn't completely turned a corner, the pace of decline in apartment prices is slowing, resilient vacancy rates suggested new supply is being absorbed and rents are forecast to stabilise.

There were 146 new apartments sold in the September quarter, according to property consultants Urbis latest Apartment Essentials report, down from 212 sales in the previous quarter.

Urbis director Paul Riga said that though down from the previous quarter, sales remained in line with the four quarter average of 152 sales a quarter.

“The strength of inner Brisbane’s rental market is expected to be an appealing driver in attracting investors back to the new apartment market,” Riga said.

“With currents levels of population and employment growth combined with a declining level of apartments being completed the rental price growth trend is expected to continue over the coming 12 months.”

The average sales price decreased over the quarter by $8,000 to $748,829, driven by Brisbane's inner-south which saw fifty-two percent of sales.

The inner south precinct is set to grab the largest share of new apartment completions, expected to hit 31 per cent across 2020 and 61 per cent across 2021.

The inner Brisbane rental market has continued to strengthen throughout the year, recording tightening vacancy rates and increasing prices.

Urbis’ analysis of the new apartment rental market reports an indicative vacancy rate of 0.6 per cent for new apartments.

“New apartment buildings are in high demand, and based on our discussions, building managers are seeing a high level of lease renewals and new tenants moving in,” Riga said.

“The inner Brisbane new apartment market continues to tick along, albeit at a subdued level.

“We aren’t seeing any major changes, with little movement in demand, and low levels of new supply being added.”

The quarter saw three apartment projects launched equating to 89 new apartments, down from the 467 apartments released through five new projects last quarter.

Two-bedroom, two-bathroom apartments were once again the most popular product type accounting for 47 per cent of total sales.

Over the quarter there were 22 per cent of sales in three-bedroom plus sized apartments, compared to only 13 per cent two years ago.

“Product is now being delivered to suit this market—recently built riverfront apartments are almost 100 per cent geared towards owner occupiers, whilst higher quality non-riverfront apartments are 50 per cent to 80 per cent occupied by owners.”

Recent research from Moody’s Analytics also points to a potential soft recovery, forecasting apartment prices to perform better than house prices in the medium term.

ResidentialAustraliaBrisbaneReal EstateSector
AUTHOR
Ted Tabet
The Urban Developer - Journalist
More articles by this author
website iconlinkedin icon
ADVERTISEMENT
TOP STORIES
Exclusive

Queensland Decade of Gigaprojects a Developer’s Goldmine

Phil Bartsch
5 Min
Multiplex Moderna facility
Exclusive

Industrial Subsectors Win Investor Attention as Demand Blossoms

Clare Burnett
7 Min
Bee Bricks hero
Exclusive

Beyond Green: The Rise of Net-Positive Architecture in Australia

Clare Burnett
7 Min
Exclusive

Central Element Hotel Debut Spearheads Oxford Street Renewal

Taryn Paris
8 Min
London skyline near the walkie talkie tower showing the 85 gracechurch street development.
Exclusive

Basilica to Business: London Office Tower’s Historic Rework

Renee McKeown
6 Min
View All >
With new office space becoming unfeasible, Deicorp is pivoting to mixed hotel-residential mid-construction.
Office

Deicorp Plots Offices-to-Hotel Crows Nest Tower Switch

Patrick Lau
Affordable Townsville hero
Affordable & Social Housing

Greenfield 258-Unit Affordable Plans Launched for Townsville

Clare Burnett
Fortis tops out 122 Moray Street commercial project HERO
Office

Fortis Tops Out $50m South Melbourne Office Scheme

Leon Della Bosca
Almost half the floorspace of the Moray Street block will become the Melbourne headquarters of the developer’s parent co…
LATEST
With new office space becoming unfeasible, Deicorp is pivoting to mixed hotel-residential mid-construction.
Office

Deicorp Plots Offices-to-Hotel Crows Nest Tower Switch

Patrick Lau
5 Min
Affordable Townsville hero
Affordable & Social Housing

Greenfield 258-Unit Affordable Plans Launched for Townsville

Clare Burnett
2 Min
Fortis tops out 122 Moray Street commercial project HERO
Office

Fortis Tops Out $50m South Melbourne Office Scheme

Leon Della Bosca
2 Min
The six warehouses are accessible from both Parramatta and the new Western Sydney International Airport.
Industrial

Frasers Moves Ahead with $345m Scheme West of Sydney

Patrick Lau
2 Min
View All >
ADVERTISEMENT
Article originally posted at: https://www.theurbandeveloper.com/articles/brisbane-apartment-market-sales-dip-by-31pc